Discover Why Apple, Samsung Lose Ground To Chinese Handset Makers In Q1

By Bilal Hamdan


Strategy Analytics released the latest report on the global smartphone market recently. There were some interesting features in this report. The total market share grew by at least 33% with a total unit sale of 281 million units during the first quarter (Q1) of 2014. The same period saw an increase of 9.4% in the total mobile phone market which include smartphones and all other feature phones. A total of 408 million units of mobile phones were shipped worldwide during the first quarter of 2014.



The top manufacturers of smartphones in the world were Samsung and Apple in 2013. In 2014 also they led the list by sharing the first and second positions respectively, but the notable feature is the decrease in their respective market shares. Samsung was first with an overall market share of 31.2% which saw a slight drop of 1.2% compared to the market share of Q1 of 2013. Apple came second with a market share of 15.5% in Q1 2014. But Apple also lost 2.2% of their market share of the first quarter in 2013. The clear gainers with an increase in the market share were the Chinese handset giants Lenovo & Huawei, who captured the third and fourth positions respectively.

This is because Apple has nowhere else to go to purchase the screens that they require, for the quality that they want. They do use other suppliers, but they only produce a small amount compared to Samsung. The same thing applies to the main chips, such as ARM, and many other internal components.

This means that there is not really that much difference between any top of the range models, and the latest Chinese models. They all run recent versions of Android, and have similar specs, although the hardware is not often the latest, as this helps to keep the prices low. Some of the Chinese handsets are probably manufactured in the same factories as some of the big names, the majority of Apple products are made in China.

So unlike a few years ago when Chinese mobile phones were inferior to the big brands, that is no longer the case. The mobiles may still be somewhat inferior to the latest branded models, but they are good enough for the general population of China.

They all have similar features, but the price is kept down on the Chinese models by using lower quality parts, or those which are now becoming dated. So the Samsung S5 may have the latest quad core, but the top spec Chinese model will have an older quad core. This doesn't really bother the majority of people, though, unless you want to run the latest games at the top quality settings.




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